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WorksheetsEconomics Unit 2 Test
Total questions: 22
Worksheet time: 2hrs 4mins
The market supply curve for a product shows...
the relationship between the quantity demanded of that product and a change in income
the relationship between the quantity demanded of that product and the price of the product
the relationship between the quantity supplied of that product and the price of the product
the relationship between the quantity supplied of that product and consumer testes
Which of the following pairs of products is an example of goods in substitue demand?
quilt and quilts covers
coffee and tea
printer and ink cartridge
tea and cups
Other factors unchanged, an increase in the market demand for a product will cause...
the market price to rise and supply to contract
the market price to fall and supply to extend
the market price to rise and quantity supplied to extend
the market price to rise and an increase in supply
The diagram shows the market for corn. What would have caused the equilibrium price to rise from P1 to P2?
a government subsidy to corn farmers
poor weather conditions
a successful advertising campaign for corn
inproved farming methods
A pure market economy is one that has...
farms and factories
a public and a private sector
capital and consumer goods
goods and services
In a market ecoomic system the price mechanism...
helps the goverment to provide services
measures the total value of wealth
make profits for firms
determines the allocation of resources
What is an advertange claimed for the market economic system?
it relies on traditional methods of production
unemployment can rise rapidly
it provides public goods
it responds quickly to consumer wants
What is an external cost of a new factory?
the price paid for the land
the cost of materials
the pollution caused by factory
wages paid to workers
The diagram below shows the market for alcoholic
drinks. The government has set a minimum price of
$0.60 per unit of alcohol. What will be the impact of
this policy measure?
It will cause supply to exceed demand
It will cause demand to exceed supply
It will reduce the market price
It will have no effect on the market
The diagram below shows the market for lizzy
drinks with a high sugar content. The initial market
equilibrium is at point X.
Which point will represent the new market
equilibrium following the introduction of an indirect
tax on these drinks?
A
B
C
D
X
A government decides that an economy should make more use of the market economic system. Which policy measure might help to achieve this?
A decrease in controls on imported goods
An increase in government ownership of land
An increase in subsidies to industry
The fixing of minimum wage levels for workers
A government intervenes in the market for rented accommodation. It sets the maximum weekly rent a landlord can charge per square metre of accommodation below the current market equilibrium rent. What is most likely to be observed at the new rental charge?
Demand for rented accommodation will contract
The supply of accommodation for rent will extend
There will be an excess demand for rented accommodation
There will be an excess supply of rented accommodation
Define demand.
Define the basic economic problem.
Define price elasticity of demand.
How resources are allocated in market economic system?
How resources are allocated in mixed ecoomic system?
Explain two factors that may cause the supply curve of a product to shift out to the right.
Define price elasticity of supply.
Explain two reasons why the supply of apples may decrease.
What change market supply conditions?
Discuss wheather a government should increase indirect tax on cigarettes.
